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Formal notice: claim statutory interest and compensation

When two reminders have not worked, the third letter is a formal notice. For a business debt in the EU or UK it claims the statutory interest from the day after the due date and the fixed compensation (EUR 40, or GBP 40 to 100), states the new total and sets a 7-day deadline.

When to send it

14 days after letter 1 (7 days after letter 2).

What goes in it

• The invoice, the due date, the days overdue and the dates of both earlier reminders.
• The law that applies to the debt.
• The statutory rate per year, the start date of interest, the interest so far and how much it grows per day.
• The fixed compensation for recovery costs.
• The new total and a payment deadline 7 days out.
• A line that interest keeps running until payment in full.

Excerpt

The opening of letter 3 in Overdue Kit. Words in brackets are filled in from your invoice.

Dear [contact name],

Invoice [number] for [amount], due on [due date], is still unpaid [N] days after the due date, despite my reminders of [date] and [date].

Under [the law that applies], I am entitled to:
- statutory interest at [rate]% per year from [day after the due date] ...

The full letter 3, with the amounts worked out for your invoice, is part of the paid kit (EUR 19 once). The free calculator already shows the interest and compensation.

Tips

• Use exact amounts. A precise figure with a daily increase is harder to ignore than a vague claim.
• For debts outside EU and UK business law, the kit writes a formal payment request with your contract late fee instead.
• Keep a copy of every letter and the date you sent it.

The full sequence

1. Letter 1: friendly reminder (3 days after the due date)
2. Letter 2: firm reminder (7 days after letter 1)
3. Letter 3: formal notice (14 days after letter 1)
4. Letter 4: final notice (21 days after letter 1)
5. Letter 5: payment plan offer (when they say they cannot pay in full)

Rates and sources as stored on 11 October 2026. Business-to-business debts only. Templates and calculations, not legal advice.